Budhanilkantha Heritage Hotel Limited (BHL) has officially submitted a proposal to the Securities Board of Nepal (SEBON) to issue its initial public offering (IPO), adding the company to SEBON’s upcoming pipeline of public offerings. The move marks a significant step for Budhanilkantha Heritage Hotel Limited (BHL) as it aims to raise capital from local investors and the general public.
IPO Details
The Budhanilkantha Heritage Hotel Limited (BHL) plans to issue 49.50 lakh shares at a par value of Rs. 100 per share, which, if approved, will generate Rs. 49.50 crore for the hotel. Global IME Capital Limited has been appointed as the issue manager to oversee and facilitate the IPO process. The public offering can only proceed once SEBON grants its official approval, after which the shares will be made available for subscription to the public and institutional investors.
Credit Rating and Risk Assessment
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] B+ to Budhanilkantha Heritage Hotel Limited. The B+ rating indicates a higher risk of default regarding timely repayment of financial obligations, suggesting that investors should carefully evaluate the investment before subscribing.
Company Background of Budhanilkantha Heritage Hotel Limited
Budhanilkantha Heritage Limited was incorporated as a private limited company in November 2018 and converted into a public limited company on October 4, 2021. The company operates as a special purpose vehicle (SPV) managing a five-star hotel with 99 keys located in Budhanilkantha, Kathmandu, under the brand ‘Lemon Tree Premier’.
BHL has entered into a 15-year franchise agreement with Lemon Tree Hotels Limited. The hotel commenced partial operations on March 9, 2024, and has been fully operational since mid-September 2024, offering premium services in Kathmandu’s luxury hospitality sector.
Strategic Significance
The proposed IPO represents a major milestone for Budhanilkantha Heritage Hotel Limited (BHL), providing the company with the necessary capital to strengthen its operations, expand services, and further establish its position in Nepal’s five-star hospitality market. With the backing of a recognized international hotel brand and a growing tourism sector, the IPO is expected to attract considerable interest from local investors seeking exposure to the luxury hotel segment.
